tv Real Money With Ali Velshi Al Jazeera July 30, 2014 5:00am-6:01am EDT
>> how much money do you owe people >> around $350,000 >> praying on the vulnerable >> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc. an american tonight investigative report only on al jazeera america >> president obama says the brand-new sanctions just slapped odd vladimir putin's russia will have a bigger bite. but i see mostly bark. how america could really show its teeth and put an end to the ukraine crisis. and also, more than a third of americans have an unpaid debt in collections right now, and here's the surprising part, you could be on the list and not know it. and plus, if owning your home is the american dream, here's your wake-up call. we haven't seen a home ownership rate this low in 19 years. i'm ali velshi, and this is "real money.
this is "real money", and you are the most important part of the show. tell me what's on your mind by tweeting me at ali velshi or facebook.com/ali velshi. i have a lot to tell you about twitter right now because of its earnings, but that's for later. but it's the toughest response yet from the west over russia's meddling in ukraine. a new round of sweeping sanctions announced today by the united states and the european union takes aim at the energy sectors. anything evaporated with the recent downing of a malaysian airliner over eastern ukraine. both the u.s. and the eu think they can force russia to back
off its support of pro russian separatists by crippling russia's economy. i'm not so sure, but let's look at what's new here. on the financial front. new sanctions on russia's largest state owned banks will deny them access to credit and prevent them from raising money in europe's capital markets and they won't be able to issue stocks and bonds. and they will be denied banks in the u.s. as well. on the energy front. new sanctions bar exports to russia of high-end components needed to expand the oil sector. components for deep sea drilling and arctic oil exploration and shale oil projects. and finally, on the military front, an arms embargo and ban on sales of dual use equipment, that has civilian and military uses goes into effect. now, today's new sanctions will take an even bigger bite out
of russia's $2 trillion economy, it's already teetering on collapse, with zero growth recorded this year. russia's local currency is shaky and investors have pulled out $75 billion in the country so far. for why these may fall short, there are gaping holes in them, big enough to drive a military tank through. the new sanctions won't affect very lucrative arms deals between france and russia. france is selling russia a big ship. won't change that. and even more port from a trade perspective, there are no eu sanctions whatsoever on russia's natural gas sector. first of all, russia still supplies europe with up to 40% of its natural gas needs. russia's economy will continue chugging along, even in the face of this hardship. and besides, vladimir putin calculation that the sanctions will backfire on europe and hurt its economies too.
and he may be right. but more importantly, putin will rally the russian public around his defines of the west and the ukraine and he'll blame the consequences on foreign foes. for more from the white house, let's go to vike viqueira in washington, and what an about-face. russian they were leading the charge, and they have come up with sanctions of more than the white house was. >> he tried over the course of the spring as the crisis unfolded to convince an otherwise cajoled europe to go along. and it took this galvanizing event, we can trace it back to that, the downing of malaysian airliner 17 over ukraine, and the doubling down and the backing down of vladimir putin since then, sending more funds,
and more arms, and firing over ukrainian territory from russia, and finally getting to the point where the leaders were galvanized and the moment came when president obama finally got them to go along with some sanctions. again, not the broad sectorial sanctions that have been building all along, but something significantly greater or more impactful than what they put forward to begin with. >> mike, there a sense of the white house, the sanctions that the u.s. already had on would have some effect, but clearly not having much because of the economy, is there some sense that this will put pressure of which valid vad will respond? >> i don't think there's a great deal of optimism there. general dempsey, the general chief of staff, said something interesting a couple of days ago, he was talking about vladimir putin and his intentions and he spoke of putin as resenting the way that russia was
treated post-soviet collapse, wistful of the withhold empire, and ukraine is doubtful of the russian influence, they called it akin to canada's relationship with the united states, and vladimir putin is not going to give this up now. you mentioned the political dimension of vladimir putin enjoying a bounce of public opinion in russia. so there's not a great deal of optimism at this point. however, the europeine leaders and the united states, they were up against it, they said it back on june 5th or 6th, that something had to be done, and that came and went and vladimir putin had not changed his course, and this is a question of credibility, al. >> mike viqueira for us at the white house. over on leadership questions that based russia and the ukraine and the sov yet union.
she's a senior assistant at the brooks institute. and hannah, your take on all of this, will the sanctions rachel things up to a point that might change vladimir putin's situation for the better? >> it has ratcheted it up, but i think it's a different question. the two big holes that you noted in the sanctions that were passed today, and i think i would particularly like to highlight it the fact that there was nothing really said about the gas sector. gas makes up much more of russia's energy than the oil sector, and nothing was really done there. so at the end of the day, i'm not sure exactly how biting they are, but i think that the significance here is that the west, the united states and european union t. finally did something that they said they were going to to do. we have said in the past that we were going to pass sanctions and we let the deadlines pass, and we finally stood and up did something that we said we were
going to. >> now you wonder if they have passed the rubicon. decades ago, ronald reagan warned that if you let gas come out of russia through those pipelines, you will be beholden to russia, and at this point, europe is beholden to russia for that gas. they can not accept meaningful shipments in a way and none of them frack for gas. so can they take that extra step and say, you're not selling us your gas? >> right now, it's not faceable. as you laid out, most european countries, and there are exceptions, france being one, really have lessened their independence on nuclear power stations, and they could fire the old ones back up, and they don't have any other option. l and g is only an option at a few certain places, poland being
one, but those import terminals are just come on line, and it's very guilt for them to find the l and g to import. and and it's much more expensive than what they're paying for natural gas. >> we're all addicted to cheap natural gas x. in europe, they're worried about sending their economies into a tailspin by taking a principle position against russia and having recessions in european countries. >> what we were going to see here today, the european union seems to have decided that they think that the european economy is strong enough to take whatever small shock, and they hope it's a small shock, that their economies receive from making this decision, and they have decided that they're willing to pay that price, and it's just too much for them. it's a bridge too far to let vladimir putin get away with what he has been getting away
with, and the sacrifice. >> you mentioned poland, the polls are close by russia, and they remember that good fences make good neighbors with russia, and at the same time, the dutch, after having lost all of these people on the malaysian an airlines plane, to them, i heard a ceo from holland the other night, it's a bit like their 9-1-1, they lost a lot of people, and it turned dutch opinion, and has it come to their doorstep. >> it has, and the people in the u.s. have been very frustrated in the last ten days that europe hasn't seen quick to take action, but the european union does take awhile to get in order and to move, and we have finally seen that it has taken what i would say is a step in the right direction, and that's a very difficult step for the dutch to take. they have a very high amount of
trade with russia, and they're really large trading partners, so for them, it's a complete turn about, and the thinking of the way that their economy is set up and their ties with russia. >> it's easier for us to talk about with the united states because it's minimal. you're an an lift at the foreign policy and research assistant. the american dream used to mean many owned their own home, but for many, the dream is fading. using oil to try to create a brand-new country. >> investigating a dark side of the law >> they don't have the money to puchace their freedom... >> for some...crime does pay... >> the bail bond industry has been good to me.... i'll make a chunk of change off the crime...
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>> more americans are seeing the virtues of renting a home, whether they want to or not. the government said the percentage of people owning their own home in the united states dropped in june to a level not scene since 1995. the home ownership rate during the three months in june fell to 67%. now, economists say stagnant wages and tight credit are forcing some people back to renting. home ownership rates in the united states peaked in 2014 at 69%, and that's as the housing
market was heading towards its peak and toward a collapse, and millions of american homes fell into foreclosure. home ownership rate has drifted lower every year since then. meanwhile, the gains in prices are slowing down. prices in 20 metropolitan areas in the united states rose 9% in may compared to earlier. the last time that the index gain was that small, 9% is small, was in february of 2013. now, to be clear, home prices are still rising. rising not as much as they have been. as of may, the prices are still almost 20% lower than their peak in the summer of 2006. well, the case shiller report coincides with other housing reports that paint a very mixed picture of the housing part. existing sales are improving,
but new home construction, which has a broader effect on the economy, has slowed down. robert shiller is a coauthor of the report, and also a professor of economics at yale university. and a winner of the nobel prize in economics, and he says that more held wins may be coming, but good to see you again. what are the headwinds that you're worried about? i think that the obvious thing, we're going to start to see mortgage rates drift higher? >> that's one thing. they have already gone substantially higher than when they hit record lows in 2012. i'm not talking about a catastrophe, but i'm just thinking that we have seen a lot of kries increases. we're up 27% now from 2012, and i think that these things do self eliminating. i don't think we're going to go into another bubble like we saw that peaked in 2006, so yeah, it will level off and it might
decline. it's not a horrible disaster. >> right, so even at this point, we have a 9.8% growth, certainly not the growth that we have seen earlier, but what characteristics do you attach it that kind of market? do you call it sluggish or normal or is it on being? >> well, everything is okay. we're not talking about disasters, but i think that -- i don't know, we're looking now at a weakening of the rate of appreciation over the past few months, and with this month, we saw the seasonably adjusted home prices fall. that means right now we're in a heavy buying season, so prices tend to go up. correct for that, and home prices are falling a little bit. so it gives me some concern that there could be a downward direction. but i don't know. if i were buying a house, i wouldn't change what i was doing.
>> yeah, and this is a good point. i want to put up the mortgage rate that we have right now. for a 30% fixed rate mortgage, you can get a mortgage for 3.1%, and it's a lot higher than it was last spring when was 3.25%, but this looked like the lowest in history. and i wonder if there's psychology there that we're almost a percentage point than where we were when we were record lows, and the urgency has come out of t. >> we have had two booms in home prices since the financial crisis. the first one was when congress n. the dowd frank act, gave home buyers a temporary tax credit, and everybody rushed to buy, and that pushed home prices up again, and then they pushed mortgage rates down to record
lows, and it pushed people to buy, and there's nothing like that, and that's why it would be perfectly normal for home prices to sag a little bit. they don't always go up. >> it brings me to incentives. despite the fact that those have been put aside for a while, we do offer most home buyers in america incentives. most have reached the lowest in 19 years, and i want to talk about home mortgage rates and compare them to economists. germany, unusually low rates. and the united states at 65%, canada, 69, and spain, 83%. spain and portugal offer the most. and canada offers none. it offers no incentive to buy a house, and it has a higher home ownership rate. it costs us
money to have this tax deduction, and does it help? >> it seems to me that people have to divide themselves into groups. there are some who are natural home owners and some who are natural renters. if you want to stay for a short time, you're a natural renter. and if you don't like to mow the lawn, let the professionals do those things, and i kind of think that americans are -- back in 2005 and 2006, they were so hot on investing in homes, everyone wanted their own home. and now we're getting more realistic about it. you don't need to have your own home. renting is a perfectly sensible thing to do. and in companies like germany or switzerland, where the home ownership is very low, people buy stocks and bonds instead. and that's a perfectly good way to make money. >> let me ask you about that, investments, and i don't like to talk about this, because i worry that people will turn the channel. but the way that you determine
the value of a stock relative to other things in the industry is a price earnings ratio, so the price of the stock is 18 times its earnings. i'm showing the viewers on the screen, the shiller ratio, the adjusted price earnings, and where the s&p is at 18, you're at 26. tell me the difference, and what that 26 means. >> the difference, this is technical, i guess, but the denominator of the ratio is ten years earnings instead of one year, and the earnings have grown a lot. and the denominator is smaller. and the reason we do ten years instead of one year, the idea is how much do you have to pay to get that amount of earnings? well, if the earnings jumps around from year to year, it's not a reliable indicator of value. so the earnings make more sense,
and and i my colleague, john campbell, the market tends to go down, and when it's low, the market tends to go up. >> high. >> the only time it has been higher, 1929, and 2000 and 2007. so it's really high. and the market went down after every one of those. >> are you prepared to say that this means something then? would you be pulling your money out of the market. >> well, the problem with pulling your money out of the market, the alternative interest rates are also very very low. so i think that you may not want to be overexposed. there's a risk of a drop, and some are warning of that. i'm not so alarmed about it, but i think it could happen. and the lesson isn't to pull your money out. but it's to realize that it's dangerous, and that you might have to save more for your future and your retirement.
don't think that you can get away with a small amount of saving and depend on returns to turn it into a huge thing. it might go the other way. >> there are others talking about this, and some of them didn't win a nobel prize. bob shiller, always a pleasure to talk to you. bob shiller is a professor at yale, and a nobel prize winner. look off of the coast of galveston texas, and you might see a tanker full of 1 million gallons of crude oil, stolen property. a contest that could get ugly coming up, and how you could be in collections for debt and not even know it. stay with us. >> it's a chilling and draconian sentence... it simply cannot stand.
>> its disgraceful... the only crime they really committed is journalism... >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live.
the reason, it's from curled stan, off of northern iraq. the u.s. is backing the iraqi government, which considers it smuggled oil. today, the judge said that the tanker is too far offshore and urged the matter to be resolved in iraq. but you have to get a sense of why this matters. you have to understand how oil often equals power, especially in places like iraq. >> reporter: by most accounts, iraq is quickly becoming a fractured state. sunnies and jihaddists have seized territory in the west. and the shy eats run the government in baghdad. meanwhile, kurds in the north, hor muslims but not arabs, seized the opportunity to create what they have always wanted. a country of their own. but to do that, they need money, and in this case, it's oil money. iraq is second biggest producer in opec, 300 million barrels a day.
but iraqi oil isn't spread out evenly. 75p. of it is concentrated in shia dominated southern iraq. one fifth is in the north, where an estimated $1 billion in crude lies below kurdistan. to get it out, the kurds last year built a pipeline, where at least four oil tankers have been filled with kurdish oil. but finding a buyer is a problem. baghdad is about to sue thin who transports kurdish oil, and while they managed to get a buyer in israel, others have sailed through morocco and through the suez canal to singapore and south to texas in order to sell their crude. aljazeera, new york. >> . >> this is all about what jim crane estimates at $400,000 in crude oil that the kurds are producing each day.
in houston, texas, at rice university, jim, good to see you. basic question, if someone is following the story, we're not entirely sure where this oil came from, right? ed. >> well, it's alleged to be in the autonomous region of kurdistan, and they're trying to unload somewhere. houston is one of the places that could have taken t. given the refineries that could handle the crude from kurdistan b. thank you sounds like it's an open question. and a lot of the ownership behind it, and some of the potential forces to be off loaded at. >> that's the question. we don't think of galveston and texas ports tore lawsuitless
regions, and can you put it on a tanker and assume that someone will buy it. >> you can normally, sometimes the stuff is bought and sold multiple times while the tanker is at sea, and sometimes it changes direction. i originally heard that the tanker was headed to brazil originally, and here it is in galveston. oil is traded that way, but this one, there are reasons to keep it's ownership and destination secret, or at least unclear. >> let's talk about this. there's a certain amount of oil that's produced in the kurdish region, and these guys have done a better job in some cases than the iraqi military at fighting off the isil troops, and if they can start finding a buyer for
this oil, they can possibly getting their own country. >> that's right, they have a lot of the ingredients of an independent state now. the state that's the most for secure, and the best functioning part of iraq is this kurdish region, i've been there many times myself and it does work. missing piece of that puzzle is an economic lifeline. they have managed to get some big international oil companies to invest and there's a certain confidence in their ability to honor contracts and what not, but to get that oil out and develop buyers has been the piece of their independence puzzle really. >> and for the moment, iraq is not interested in taking the oil. it's an autonomous region, but it's produced in kurdistan and gets produced in turkey through a pipeline.
>> that's right, so like most companies, the central government owns the resources in iraq. and that much is known in iraq, but still, the regions have not decided on how the revenue should be shared from the resources. there has been a dispute over this for the last ten years, and in the meantime, the kurds have invited in and decided to build a pipeline because the discussions are going nowhere. >> you mentioned that it's heavy, sour crude oil. and we often quote prices of light, sweet crude oil. and what's the difference and how is this useful? >> well, it's generally traded at a downtown. since theis has started producing a lot of the light type crude from fracking and some of the things that we seem
to be awash in now in the u.s., we have this refinery fleet, especially on the gulf coast, that was configured before this fracking boom came about. and they fig that there are more sophisticated refineries that can take the sour heavier grades of crude and trade at a discount, that a more sophisticated refinery can take care. so it's no big surprise that something like that would come here t. given the ability to handle it. >> jim, thank you for talking, and we're still looking for who owns the oil and who is buying it, but jim crane, rice university institute. chasing more than one out of every three americans right now, if you think you're not one of them, check again. collections for debts that you don't even know you owe. and plus, the rising of the machines.
>> israel's invasion of gaza continues tonight. >> we have been hearing a lot of tank shelling coming from where we are, here. >> every single one of these buildings shook violently. >> for continuing coverage of the israeli / palestinian conflict, stay with al jazeera america, your global news leader.
>> i'm feeling confident about the future, i'm not alone. u.s. job market strength leaves america feeling more confident about the economy than any point in the last seven years. here's how i know that. an index of consumer confidence, compiled by the confidence board, jumped in july to the highest level since october of 2007, before the great recession began, and home prices started to come down a little bit. and this is a big deal. this is the third straight month since confidence has been gained. and it is a labor market that has created at least 200,000 new net jobs a month. economists say this is a good sign for consumer spending, which is responsible for 2/3 of the u.s. economy. there's no doubt that consumer spending is a key ingredient for
growth, but how consumers pay for their purchases or don't pay for them. a studies out today from the urban institute show that one-third of all adults have debts that have been passed onto collection agencies. fact that 77 million americans have debt in collections is alarming. obviously it is, but it's important for you to know that the overall percentage of americans with debt in collection hasn't actually changed much in the last decade. so we want to know why this rate has stayed so high, and what the implications are for the unpaid debt for you, the consumer. mary snow has the story. >> the number of americans with debt in collections is shocking. credit card holders, with payments generally 180 days. worse, many of these consumers don't even realize they owe money. >> that could be anything from a magazine subscription to a gym
membership, to any one of the recurring payments that we have set up on auto pay, and if you change bank accounts or credit cards, you don't realize that that account is on there, it could easily fall into collections. >> student loans and hospital bills are frequently overlooked. especially with copayments, or bills that patients believe assurance covered. on average, the amount of debt ode is $5,000, but it can vary widely, up to $25,000. in some instances, outstanding payments are so small, collection agencies will let them go, but those could mean big trouble on a consumer credit report. >> a lot of agencies use the credit report for insurance rates, and what you pay on a loan, and if you will be given a loan at all. and it can make life more
difficult if you don't have a good credit score. >> according to the urban institute, delinquent debt is overwhelmingly concentrated in the south, where 30 perfection of those are in collections. stagnant income is to blame. it could be devastating for a family and community. and good news, consumers can learn what's on the credit report before it's too late. >> once a year, they are entitled to a free credit report, and that's the only government site where every consumer can get each of the three bureaus for free. >> mary snow, ali aljazeera. >> not all debt is created equally. it's easier to get a phone than it is for a smart phone. and there are interesting concludings on where people are taking on more good debt versus bad debt.
one analyst shows that the higher metro area have more mortgage debt while non-morton debt in collection is higher than blue collar affluent areas. the director of the martin institute at the university of toronto, he's a great friend. and richard, thank you for being with us. and you studied this report by the urban institute. and what are your implications? >> first of all, the researchers did a great job, and one of things that they say, we studied income inequality and very few people have studied the differences in debt. and they looked at this, and overall, the 35% of debt be in directions but you see the giant debt collection belt in the south, and what's really interesting, 26 of the top 100 metros have more than 40 perfection of their people in
debt collection. a place like las vegas, or jacksonville, florida, have almost half of their population with debt in collection. >> places with high foreclosures, and where they got really hit. so the equity if your home if you had one, collapsed. >> there's a real difference between total debt, which is good debt for paying for an education, a good mortgage in an area that's appreciating, versus bad debt, to go on a trip or tragically, to pay for medical bills. what we found, and we submitted to a statistical analysis, the good debt, the mortgage debt, was a characteristic of a high-tech, france san francisco, boston, washington d.c., and the bad debt was a characteristic of consumer credit card debt a lot
of good jobs, and sunbelt, metro, las vegas, jacksonville, that got hit by the housing market, except not who has rising incomes and rising boats, but who has debt faltering behind. >> you are in one of these places where let's look at mortgage debt relative to income, and the darker blue areas are people carrying much more debt, and as you get lighter, you see more relief from that. this is one of those things where if you ever debt in collections, you're not going to get that. >> one of the intriguing things, when we came up with the date a. i was surprised that it's not worse off in metro, but there was a higher debt to income
ratio in higher income places. they have more disposable income, and they can tolerate a higher mortgage and still have money left over. it was the non-mortgage to income debt that was really focused, highly corallated with these lagging places. >> does this research give you a sense of how you're supposed to address it? this us back and keeps us bifurcated. the wealthy, they're not held by things that make us richer. >> the global super rich, where are they buying? new york, it san francisco, the coast of l.a. the coast in miami, toronto, vancouver, and london and they're buying real estate that's appreciating on a rapid clip, but i think that the real story, we're a nation of detect.
you know in better than i do, and americans have to understand sooner or later that debt is not a way of living. that's the difference between the americans and the canadians. americans believe that they can live on a credit card and live on their house as a piggy bank, and i think the lesson of this study is too many of us, think even with the great recession, you would have thought this would have cured it. but the real thing, americans have in a way become overdependent and can addicted to detect. >> for those of you who have not read the book, the rise of the class. technology has the power to make your life easier, but has the power to take your job away. i look at robots at work, and what flesh and blood can do. and plus, lonely hearts looking for love, turned into lab rats.
>> on tech know, >> scientists go up in the sky, >> we're flying over a fracking field in texas >> using ground breaking technology to check air quality down below. >> formaldehyde levels were astronomical...it's bad. >> tech know, every saturday go where science meets humanity. >> this is some of the best driving i've every done, even though i can't see. >> tech know. >> we're here in the vortex. only on al jazeera america. >> this, is what we do.
>> al jazeera america. >> in some places, jacob ward shows us jobs in two industries that robots could simply do away with forever. >> every day, approximately 3 billion people do some form of work, and they bring with them, their acts, and compassion and manual dexterity. but how many of these jobs will be done by a machine.
one of the jobs is dry-cleaning. at the moment, it takes human dexterity to deal with the variety of the clothes we wear. no robot can feed it through a standardized machine. >> as soon as i was born, my parents would have me on their backs, working the machines, and by the age of seven, i was putting things on hangers and taking the intake at the counter, and by the age of 15, i was working on saturday so they could have a day off. my whole life is pretty much working at the dry-cleaners. >> robots have shown that they can fold towels. it takes more than six minutes to fold a single towel. and maybe someday they will be able to do that while sizing up a stain, but right now, it's human experience. >> my dad can say, we can get
that out for sure, and that's guaranteed. that's after years of knowledging in the free. >> we still need humans to drive us around in taxis too. >> right now, robots are pushing us to a world where humans are not going to be necessary, but right now, we need to know not just when to proceed through the intersection, but dangerous stuff, like when the person if front of us is drunk. >> these are not just logistical things, but with time, robots will be able to take over these tasks. >> let's look for a second at how many people will be affected by this automation. out of 175 million people, 210,000 work in dry-cleaners, and 133,000 of them work in taxis and drivers. and that means half a million people would be in new lines of work some
of just those two industries. they would create new jobs, but some economics believe that the this this part-time, and still have a great smart phone. anybody will be able to reap the fruits of that technological change though they work less hours. >> is food sacred? the job of chef is a booming area of employment. and perhaps that's what robots will never replace. our ability to sell taste, visual, emotion, the stuff of the tongue, the eyes and brain. >> new order in, table 63! >> what you can really see here, commonnists have differences, and they don't agree on where,
but there's a structural change coming of some sort. >> you and i love technology, and we have to face reality. some of our smartist people have said, there will be disruptions. this kind of thing will affect things. and i look around the world to see where automation has worked well and still kept people employed. germany is a good example because they have created a knowledge economy out of their manufacturing, but being a service economy, things that you have to do for people. >> that's right, i was listening to larry page the other day at a conference, and he was saying that he had a conversation with richard branson, where it would make more sense in terms of unemployment for companies to hire two part-time workers rather than one full-time worker. if you're going to spread out
the wealth, meet people's needs and go for it. i think the little utopian, that's how it is. >> these are also the people who influence our world and change things around us. and it's an interesting thing for us to stay o on top of, especially given our concerns about the erosion of the middle class. thank you for continuing the discussion. all right, the deal with twitter. the company just said that it lost money, but now it's worth more than it was a few hours ago. why, coming up. >> a shocking america tonight investigative report... >> you take someones hopes and dreams of childhood, and then out right steal their money >> wishing to start a family >> we lost over $20,000 trying to do surrogacy in mexico >> but left with broken hearts and empty pockets >> how much money do you owe people >> around $350,000 >> praying on the vulnerable >> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc.
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america mobile app, available for your apple and android mobile device. download it now >> you remember those days when investors didn't give a hoot about the tech company's reported profits? get this. twitter reported that the net loss got bigger in the earnings period. but the shares jumped 30% on the news, because the investors are paying way more attention to the fact that the company's revenue beat expectations, rising 140%. and it gained active users, up from 255 million in december. the question is whether twitter has turned a corner or whether the party is going to be over soon. mark, a report. >> when i was a kid, to get a 30% bump in the value of a stock meant that somebody was going to buy the company out and these are reactions. >> part of it is that the
expectations were so low. twitter had a couple of bad months, and they had the ad numbers going up, and the user numbers were plateauing a little bit. so well wall street analysts were predicting and they spent a lot of time talking on the earnings call about the number of people that will look at a tweet, somewhere off twitter. and said that's two or three times bigger. it's not a registered user, and doesn't show up on their metrics. >> it's interesting, i didn't really understand what twitter meant by active users. it's somebody who has logged on at least once a month. >> it's a problem that facebook doesn't really have. maybe they will follow a few people and forget about it, and not log on, and not tweet and be active. they have a lot of users register the accounts, and then the accounts go dead.
>> let's talk about the engagement. we were looking at the world cup, and without talking about facebook, they want to be the live news thing of the world. first of all, do you think that's likely some and secondly, can they monetize? >> certainly, they love twitter for that refine. it's called realtime marketing, where they can jump into a conversation like the world cup and take advantage of thattened so with all of these brand advertisers that were making all of these tweets, and sometimes paying for these prommed tweets to latch onto that, and that's not what they will they can do in facebook. which is more like traditional tv broadcasting, but twitter, they can have a conversation. >> is there some sense in the advertising world that that
viewer seeing that tweet is more valuable than me right now, reading a newspaper or seeing that on the internet. is there something to engage the viewer? >> twitter makes about 81 perfection of its ad money on mobile. so it's on smart phones and phones in emerging markets, and an advertiser finds a desperate way on mobile phones. >> do you find a lot of occasions where you find some on apps that you're using? >> what facebook has done, helping to install ads, and candy crush, the most popular game, and twitter has jumped the board on that, as well as google and yahoo, and this is what is turning over right now. but twitter with amazon, and
it's part of a payment company, and facebook is introduces something called a buy button. it's moving towards an ad that you click on, and you may see a product that you want to buy on your twitter feed and you buy that. >> mark is a mobile reporter. well, last month, facebook acknowledged that they had used users as guinea pigs, and the media giant isn't the only site to experiment. three experiments that it had also done on human beings, and these included hiding user's profile pictures, and manipulating compatibility scores and matching them together.
okcupid's president tried to justify the text by saying if you use the internet, you're the subject of hundreds of experiments on any given site. the users of the sites were notified once the experiments had ended. the s&p 500 is a pretty good gage of the stock market. 200% since the market bottomed out in 2009, and lately, we have heard a lot of bloom from bloom sayers, with this five year bull market. options
are -- the digital right to sell a stock. and here's the deal. right now, the number of puts on the s&p 500 are double the number of calls. and normally, the ratio is one-to-one, and these are better signs that the market is headed for a fall, and the guy who crunched the numbers has gone a step farther. he says that the lopsided market has only occurred twice in the past 20 years, and they proceeded major corrections in stock prices. that's just one man's analysis, but either way, if you maintain a balanced portfolio and keep reallocating your assets every so often, you should be prepared for the ups and downs of the stock market. that's the best option. i'm ali velshi, thank you for joining us.